Exam 11: Output and Costs

Cost schedule -In the above table, the average fixed cost of producing 15 units of output is

If wages a firm pays it workers increase, then

Average total costs are

Jefferson's Cleaners -Using the data in the above table, which worker hired at Jefferson's Cleaners is the first to show diminishing marginal returns?

Marginal cost is equal to

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total variable cost of producing 18 baseball hats per hour is

-The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the

-In the figure above, curve C is the ________ curve.

Most total product curves have

Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of

Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pays his farm hands $28,000 a year. Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.

-Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average fixed cost of producing 25 baseball hats per hour is

The marginal product of labor is the change in total product from a one-unit increase in

-The table above shows some data that describe Tom's T-Shirts' total product when Tom's has 1 sewing machine. Diminishing marginal returns begin when the ________ is employed.

The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve, or intersecting the average total cost curve?

-The above table shows the total product of producing baseball hats. The marginal product of the 4th worker is equal to

Total fixed cost is the sum of all

At that amount of output where diminishing marginal returns first sets in,

-The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?